AT&T Selling its Connecticut Landline Operations for $2 Billion
Published on: 17th Dec 2013
By: Ian Mansfield
USA based AT T announced today that it has agreed to sell its incumbent local exchange operations in Connecticut to Connecticut based Frontier Communications for $2 billion in cash. The transaction includes wireline network assets and consumer business and wholesale customer relationships.
Frontier provides communications services to residential and business customers across 27 states today. With the transaction, Stamford-headquartered Frontier will now have operations to provide communications service to customers in the State of Connecticut.
AT&T will remain operating in the State, but as a wireless network only.
"This is a good business decision for both companies, good for customers and good for Connecticut," said Patricia Jacobs, President-AT&T New England. "We will continue to invest in Connecticut to serve our wireless and business customers, will maintain a significant employee presence here and will continue to be involved in the community. The fact that Frontier is headquartered in Connecticut will help ensure a smooth transition for customers and employees."
About 2,700 wireline employees supporting AT&T's operations in Connecticut will transfer with the business to Frontier at the close of the transaction. Frontier has agreed to honor the existing collective bargaining agreement for employees represented by the Communications Workers of America.
More than 900,000 voice connections, including U-verse Voice over IP and traditional voice services delivered over access lines. Approximately 415,000 broadband connections, including about 245,000 U-verse High Speed Internet and about 170,000 DSL customers. About 180,000 U-verse video subscribers.
AT&T expects the transaction to close in the second half of 2014. The divested operations represent about $1.2 billion in annual revenues, or less than 1 percent of AT&T's total annual revenues, as of 2013.